Global sales of electric and plug-in hybrid vehicles continued to surge in April, driven by strong performance in China and Europe, despite a slowdown in North America, according to new data released Wednesday by EV research firm Rho Motion.

Worldwide, electric vehicle (EV) sales reached 1.5 million units in April, a 29% increase compared to the same month in 2024. However, this figure marked a 12% decline from March, indicating a monthly dip in momentum. From January to April, EV sales totaled 5.6 million units — a 29% rise year-on-year.

Europe and China were the key drivers of growth. Sales in Europe jumped by 35% in April, with China close behind at 32%. Meanwhile, the rest of the world saw an even stronger April growth rate of 51%. In contrast, North American sales declined by 5.6% during the same period.

“Tariff negotiations are dominating headlines, but quietly, domestic manufacturers in China and the EU are growing market share,” said Charles Lester, Data Manager at Rho Motion. “The EU is the standout performer in 2025, as emissions targets have ignited a rapid industry transition to electric.”

From January to April, China posted a 35% increase in EV sales compared to the previous year. Europe followed with 25%, while North America saw more modest growth at just 5%.

Experts point to political developments as a key factor shaping the market’s trajectory. “EV adoption is accelerating — but politics, not technology, will decide who leads and who lags,” said Professor Christian Brand, a transport and energy expert at Oxford University.

In the U.S., uncertainty over the future of green tax incentives under President Trump’s administration is causing hesitation. Legislation under review would eliminate the current $7,500 federal tax credit for EV purchases by the end of 2026 and limit eligibility further. Tax breaks for commercial and second-hand EVs could also be scrapped.

Meanwhile, China is rolling out new consumer incentives to stimulate its slowing economy. Buyers trading in older vehicles for new EVs are now eligible for subsidies worth 20,000 yuan (€2,471), further boosting demand.

Trump’s 25% tariffs on imported vehicles and components have complicated matters for automakers with global supply chains. While recent executive orders offer some tariff relief, industry leaders remain concerned about profitability and dampened consumer sentiment.

Despite the policy divide, more than one in four cars sold globally this year is expected to be electric, according to the International Energy Agency.

“The shift to EVs is a gradual evolution, not a revolution,” said Brand. “It’s not just about switching engines — it’s about reshaping entire industries.”

Saudi Arabia’s oil giant Aramco reported a 4.6% drop in first-quarter profits on Sunday, amid declining global oil prices and growing financial pressure to meet the kingdom’s ambitious development goals, including massive investments in the United States.

Aramco, the world’s largest oil producer, posted a net income of $26 billion (€23.4 billion) for the first quarter of 2025, down from $27.2 billion (€24.5 billion) during the same period last year. Quarterly revenues came in at $108.1 billion (€97.4 billion), slightly up from $107.2 billion (€96.5 billion) a year earlier, according to a filing on the Tadawul stock exchange in Riyadh.

The dip in earnings comes as global energy markets remain volatile. Brent crude, the international oil benchmark, recently traded at just over $63 (€56.7) a barrel—down from peaks of over $80 (€72) last year. Aramco’s stock, which once traded at highs near $8 (€7.2), has also slipped in recent months, closing Sunday at just over $6 (€5.4) per share.

Aramco CEO Amin H. Nasser acknowledged the challenges in a statement, saying “global trade dynamics affected energy markets in the first quarter of 2025, with economic uncertainty impacting oil prices.”

Meanwhile, Saudi Arabia has pledged to invest $600 billion (€540.2 billion) in the United States during President Donald Trump’s second term. Trump, expected to arrive in Riyadh on Tuesday for his first official overseas trip since returning to office, has publicly called for that figure to reach $1 trillion (€900 billion).

The investment pledge coincides with Crown Prince Mohammed bin Salman’s ambitious domestic agenda. Central to those plans is Neom—a $500 billion (€450.1 billion) futuristic megacity being developed along the Red Sea—and preparations for hosting the 2034 FIFA World Cup, which will require tens of billions of dollars in infrastructure spending.

To help fund these initiatives, Saudi Arabia may have to dip into its sovereign reserves or increase borrowing, especially as oil revenues come under pressure. The recent decision by the OPEC+ alliance to increase oil production by 411,000 barrels per day next month is expected to complicate efforts to stabilize prices.

Aramco remains one of the world’s most valuable companies, with a market capitalization exceeding $1.6 trillion (€1.4 trillion), trailing only a handful of U.S. tech giants. While a portion of its shares trade publicly, the majority is held by the Saudi government, providing a crucial financial pillar for state-led development and the royal family’s wealth.

Would you like a version of this article tailored for an international business audience?